Minimum wage hike breezes through Mass. Senate

Thursday

Jun 12, 2014 at 9:08 PMJun 12, 2014 at 9:10 PM

The Massachusetts Senate on Thursday voted overwhelmingly in favor of a bill that would raise the state’s minimum wage to a nation-leading $11 an hour by 2017 in a move that Democratic leaders said they feel confident will be enough to avoid a costly ballot campaign this fall for higher wages.

The Senate voted 35-4 to pass legislation that would gradually increase the minimum wage in three steps from its current perch at $8 an hour to $11 an hour in 2017, with $1 increases taking effect on the first day of each of the next three years starting on Jan. 1, 2015.

While supporters touted the need to help lift minimum wage workers out of poverty and stimulate the economy, some small business groups warned the effort would cost jobs and drive some small employers out of business.

“If you’re payroll is going up, you’re taxes are going up,” said Jon Hurst, president of the Retailers Association of Massachusetts. Hurst said the bill, which also overhauls the state’s unemployment insurance system, reflects the clout of unions in Massachusetts.

Senate President Therese Murray, before the vote, said she believed the bill would be sufficient for ballot organizers to drop their proposed referendum to raise the minimum wage to $10.50 by 2016 and link future increases to inflation. Though the Senate initially supported indexing wages to inflation, the measure was dropped in a compromise with the House.

Asked whether she had been given any assurances from ballot petition leaders, Murray said, “We have gotten some feedback that if this is passed today and the House passes it and we get it timely to the governor's desk and he signs it, that the ballot question will not go forward.”